(0) (11) (1) Gamma Company Gamma Rho Rho b. If sa a. Which firm would be considered to have the higher (1) business risk

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0 11 1 Gamma Company Gamma Rho Rho B If Sa A Which Firm Would Be Considered To Have The Higher 1 Business Risk 1 (28.15 KiB) Viewed 185 times

(0) (11) (1) Gamma Company Gamma Rho Rho b. If sa a. Which firm would be considered to have the higher (1) business risk, (i) financial risk, and () total risk? Explain your answers. Select has higher business risk because its degree of operating leverage is -Select- -Select- has higher financial risk because its degree of financial leverage is-Select- has higher total risk because its degree of total leverage is [Select- Degree of Operating Leverage (1) Gamma Actual EBIT Expected EBIT x Rho Actual EBIT Expected EBIT x (DOL) 5.0x 4.2x Expected EPS x (1) Gamma Actual EPS=" Rho Actual EPS-Expected EPS x Degree of Financial Leverage ch firm turn out to be 8 percent higher than expected, what will be the effect on their (1) EBIT and (8) EPS? Do not round intermediate calculations. Round your answers to three decimal places. (DFL) 1.3x 2.5x